Abstract: Divisive faultlines theory could be a new reference for exploring the dynamic process of meso subgroup structures in technological innovation network.In this study, we collect joint application patents data in Chinese electronic information industry from 2000 to 2012 to build inter-organizational technology innovation network and to explore the influencing mechanism of divisive faultlines on subgroup polarization from network embeddedness perspective. Results show that potential divisive faultlines will appear when the inter-organizational tie strength is nonuniform across the multiple dyads, but its direct impact on subgroup polarization is not significant; on the other hand, the effect of divisive faultlines on subgroup polarization is increased significantly when structural embeddedness and positional embeddedness are at high levels, which demonstrates potential divisive faultlines being not triggered may keep dormant state and will not show a direct impact, whereas divisive faultlines triggered by some key mechanisms will impact significantly on subgroup polarization. Research conclusion offers a new theoretical explanation and research perspective for revealing the microscopic mechanism of formation and change of subgroup structure in technological innovation networks, and could an important reference for further study on the stability and knowledge sharing of technology innovation network.